The silver economy: an investment opportunity that keeps growing

We are moving toward a world where the number of people over 65 will be twice that of children under five. In other words, this age group will increase from representing 10% of the global population to 16% by 2050, according to United Nations data. In this context, the concept of the silver economy continues to expand due to its significant implications and the investment opportunities it creates.

The silver economy refers to the usual spending, consumption, and needs of people over 65. This population group’s lifestyle, needs, consumption, and leisure are very different from other age groups. For example, in the U.S., U.S. this age group accounts for 36% of total healthcare spending, despite representing only 18% of the population. By contrast, people aged 0–34, who make up 44% of the population, accounted for only 21% of healthcare spending.

These statistics provide just a glimpse of the many transformations, challenges, and opportunities driven by the growth of the silver economy. From a greater need for senior living facilities to more tailored travel, leisure activities scheduled at different times of day, and many other impacts.

The numbers are quite revealing. Globally, life expectancy is expected to rise from an average of 72 years to over 77. Now, there are countries that could be far more affected than others. In Spain and Italy alone, people over 65 are projected to make up 46% of the population by 2050. The European Union itself estimates that 65% of Europe’s population will be over 70 by 2060, and that the global population over 80 will triple, surpassing 420 million people.

With all these figures in mind, it is natural to ask what impact this demographic shift could have, and what opportunities it might create. As far as challenges go, two sectors are likely to be most affected: public healthcare systems and public pension systems.

In other words, it will become increasingly costly for states to maintain welfare systems, which were previously supported by a considerably larger young, productive, working-age population.

Despite this, healthcare spending—both private and public—is expected to rise, as will private solutions to secure a pension or income as people approach retirement age.

Even with these challenges, investment opportunities are emerging. For example, the global pharmaceutical and biotech market is expected to grow by 6% annually, driven by the U.S. U.S. (+5% annually in Europe through 2028) and by the launch of products aimed at improving existing treatments. 

At the same time, Rothschild & Co highlight another growth area in the global market for hearing aids, eyewear, and diagnostics. They also point to other sectors, such as finance, insurance, tourism, food, and consumer products and services.

It is important to note that 44% of total spending in the European Union in 2025 came from people over 55, who have higher disposable income than younger generations. Beyond that, in addition to healthcare and the sectors already mentioned, technology sectors are also set to see significant growth, especially those that make life easier for older people, such as autonomous vehicles, telemedicine, smarter and more age-friendly cities, and more.

On the leisure side, which has received less attention, older adults have more free time since they no longer need to work or care for their children. As a result, cultural and recreational activities, adapted sports, and senior-friendly resorts are also likely to expand.

Adapted housing for older adults—whether through smart home technology or through neighborhoods designed with this population in mind—as well as assisted living facilities, will also see strong growth.

Finally, as highlighted by Nasdaq, the robo-advisory industry is booming thanks to the growth of this age group and the need to invest in order to generate greater wealth for retirement years. Data show that the global digital wealth management market is expected to grow at a compound annual growth rate of 15.3% between 2021 and 2028, partly due to the increasing demand for tailored financial solutions for older adults.

In Switzerland, people over 65 already accounted for 19.7% of the population in 2023, seven percentage points higher than fifty years ago. According to OECD data, this age group is expected to represent 30% of the total population by 2050, a faster rate of aging than in most OECD countries. The proportion of people over 80 is projected to double by 2045, reaching 10%.